Buying homes in foreclosure continues to be a potentially lucrative investment. You have to be willing to do a lot of work in terms of finding the right opportunity - and maybe a lot of work in terms of physical repairs - but there is still money to be made.
According to nationwide data from RealtyTrac.com, foreclosed properties sell at an average discount to value of approximately 40%. For example, you might find a property fairly valued at $600,000 that you could obtain for less than half price. Moreover, the differential between value and price has been growing, making such opportunities more attractive.
For the knowledgeable investor - with equally knowledgeable legal counsel, of course - the opportunity to buy a distressed property, add value to it and return it to the available housing stock, while making a reasonable profit, is still there. Moreover, according to the data, the potential profit on such investments appears to be growing - at least in theory.
No comments:
Post a Comment